European leaders urged Greek Prime Minister
Tsipras to pare back his ambitions for easing the
financial pressure on his people as stocks & bonds tumbled. Officials spoke out after Tsipras
once again vowed to reverse the austerity imposed by the
previous gov as a condition for Greece’s bailout. That
sets up a clash with the rest of the euro area when finance
ministers meet to discuss the country’s financing needs on Wed.
“Greece shouldn’t assume that the overall mood in Europe
has changed to the point that the euro zone would endorse Mr.
Tsipras’s entire government agenda without limitations,”
European Commission pres Jean-Claude Juncker said. While Greece is pushing the troika of official creditors to
drop the austerity demands that have helped wipe out a qtr
of GDP since the start of the crisis, the
gov also needs help to meet its obligations. Without
concessions, the gov may run out of money before the end
of Mar, forcing Tsipras either to cave in to European demands
or abandon the single currency. Behind the public rhetoric, the Greek gov has
shifted to a more cooperative tone in recent conversations with
the troika, according to a leaker.
Greece has been told it needs to ask for a formal extension of
its existing bailout deal in order to receive financing. Other officials said Greece may be given more
time to present its complete proposals for a permanent
arrangement if Tsipras accepts he needs a new program &
commits not to reverse the most important overhauls of the
bailout agreement. Tsipras said he aims to reach an agreement with the
country’s creditors within 15 days on a “bridge program,”
which will ensure the country’s financing until Jun. “Greece wants to service its debt, which is now over 180
percent of GDP,” Tsipras said. “It’s impossible to service as
long as our partners insist on austerity.” The country’s public debt stands at more than €320B ($362B) & the debt-to-GDP ratio is the highest
in the EU.

Ukraine’s almost yearlong conflict enters a
pivotal week, with the outcome of more talks on a peace
agreement potentially determining whether a wider war can be
avoided as violence escalates. Discussions resume today aimed at preparing a
summit for the leaders of Germany, France, Russia & Ukraine on Wed. Putin
said all sides must first agree on their positions before talks
can take place. The diplomatic effort comes as the US & some European
allies consider supplying arms to Ukrainian forces, while German
Chancellor Merkel warned of a deepening conflict that
can’t be won militarily. A breakdown of negotiations would also
strain transatlantic unity in dealing with Russia, as Europe’s
consensus on economic sanctions shows signs of fraying. Merkel & French pres Hollande stepped up
peace efforts over the past week after fighting between
Ukrainian forces & pro-Russian separatists
escalated. Looming over the negotiations is the prospect of
deeper sanctions on Russia, an economic collapse in Ukraine &
the risk that the conflict descends into a proxy war. The confrontation in Ukraine was “not caused by the
Russian Federation” and an “immediate” cease-fire is needed,
Putin said. The crisis
“emerged in response to the attempts of the US & its
Western allies who considered themselves ‘winners’ of the Cold
War to impose their will everywhere,” he added. “We have seen how NATO’s infrastructure was moving closer
and closer toward Russian borders and how Russian interests were
being ignored,” Putin said. More than 5K have died in the fighting since Apr. 9 gov troops were
killed & 26 wounded during 100 attacks by rebel forces in the
past 24 hours, a Ukrainian military spokesman said. The Ukrainian economy meanwhile is being brought to its
knees, making the prospect of reviving the country even tougher
should a peace agreement ever emerge.

McDonald’s, a Dow stock & Dividend Aristocrat, is replacing its CEO in a bid to reignite growth, posted a
worse-than-projected decline in global sales for Jan,
dragged down by a slump at its Asian restaurants. The sales
fell 1.8% & analysts had estimated a 1.2% decline. While US sales
narrowly increased, the region that includes Asia, the Middle
East & Africa plunged almost 13%. The results underscore the challenges facing incoming CEO
Steve Easterbrook as he charts a new course for the world’s
largest fast-food chain. The sales slowdown led to the
resignation the current leader after
less than 3 years in the job. In Asia, MCD has suffered a series of setbacks,
including the rationing of french fries in Japan & a scandal
involving a meat supplier. The vendor, Shanghai Husi Food was accused of repackaging old meat in Jul, prompting
MCD to take products off its menus in the region. The woes have taken a heavy toll in Japan, where the
company lost $186M in 2014 as sales plunged
39% in Jan, marking the 12th straight
month of declines. In Dec, MCD was forced to ration fries in the
country after a labor dispute at US ports crimped supplies of
potatoes. The Asian challenges have overshadowed a modest recovery in
the company’s home country. US same-store sales climbed 0.4% last month, the 2nd consecutive gain. Easterbrook joined the company in 1993 & was known as a “feisty advocate” for the brand during
that time & invested in new ordering technology, which
MCD hopes to expand in the US. The stock fell 1.18. If you would like to learn more about MCD,click on this link:club.ino.com/trend/analysis/stock/MCD?a_aid=CD3289&a_bid=6ae5b6f7

McDonald's (MCD)

Markets are mushy today as intl stories are making traders nervous. Greece will probably dominate news this week. Plans by the new gov indicate the future for Greece is for more financial problems. Ukraine fighting is ongoing which is leading to more sanctions on Russia. The MidEast situation looks bad. Northern Iraq, Syria, Yemen, Libya, etc are having major problems with terrorists. New earnings reports are still due in the US.